Income Statements under Absorption and Variable Costing

Shawnee Motors Inc. assembles and sells MP3 players. The company began operations on August 1 and operated at 100% of capacity during the first month. The following data summarize the results for August:

Sales (18,000 units) $2,160,000 Production costs (23,000 units): Direct materials $1,021,200 Direct labor 489,900 Variable factory overhead 246,100 Fixed factory overhead 163,300 1,920,500 Selling and administrative expenses: Variable selling and administrative expenses $297,700 Fixed selling and administrative expenses 115,200 412,900

If required, round interim per-unit calculations to the nearest cent.

a.I need to do an income statement according to the absorption costing concept.

Shawnee Motors Inc.Absorption Costing Income StatementFor the Month Ended August 31

b. I also need income statement according to the variable costing concept.

Shawnee Motors Inc.Variable Costing Income StatementFor the Month Ended August 31